The broad objective of this paper is to conceptually examine the accounting and reporting the effects of changing prices: Issues and challenges. Changes in the price levels of good and services especially during periods of high inflation have negative effects on reported financial results of an enterprise. This makes it difficult for relevant stakeholders to ascertain the firm‘s ability to continue to generate revenue now and in the future and which hampers investment decision-making. The consequences of rising prices on reported financial results are examined as well as the responses of the accounting profession to address the challenge through the issue of various accounting standards. The major methods adopted to account and report for changing prices and their strengths) and weakness are also examined. The study concluded that rapid changes in the level of prices constitute a real threat to the integrity of reported financial statement as the basis for informed decision-making. The study recommended that accounting professions should rise and tackle the challenges of price level changes.